Elie Maalouf, the CEO of IHG (IHG.US), said that hotel demand in the US has not shown signs of a potential recession. He said that the strong summer momentum has continued into July and August, and that “as long as GDP continues to grow, as long as the middle class continues to grow, travel is something that people really like to do and something that people continue to want to do. Therefore, we are very optimistic about the continued growth of long-term demand going forward.”
IHG, which is based in the UK, operates Holiday Inn and Crowne Plaza brands. Mr Maalouf said that, given that hotel prices have only kept pace with inflation since the pandemic, there is further room for hotel prices to rise relative to other industries.
Mr Maalouf’s comments contrast sharply with other parts of the industry. Ryanair, for example, said earlier this month that summer airfares would fall sharply this year as consumers cut back on spending. Other airlines, including Lufthansa, Qatar Airways and Delta, have also issued similar warnings.
Moreover, IHG’s results showed that total revenue for the group grew 4 per cent year on year to $2.32bn in the first half of the year. Room revenue per available room also grew 3 per cent, and US room prices have been rising overall since April.